We provide a selective survey of empirical evidence on the effects as well as the drivers of persuasive communication … response to persuasive communication? In particular, we distinguish information-based models from preference-based models …

This paper identifies a cost of using the price system and from that develops a general theory of allocation. The … theory explains why a buyer's stochastic purchasing behavior matters to a seller. This leads to a theory of optimal customer … mix much akin to the theory of optimal portfolio composition. It is the job of a firm's marketing department to put …

economic model, in which persuasion is communication of objectively valuable information, with a behavioral model, in which … behavioral model, and compare the two models using data on financial advertising in Money and Business Week magazines over the …

literature has been prominent in legislative debates about taxation as a tool to discourage smoking, and has contributed theory … other tobacco control policies, such as advertising restrictions, prominent in tobacco control debates. Research addressing …

advertising agency industry? This question is addressed by treating an advertising agency as a multiproduct firm. The firm … advertising messages which it creates on behalf of its clients. Evidence is presented indicating that the structure of demand and … costs in the advertising agency industry conforms to the conditions that MacDonald and Slivinski (1987) showed were required …

perform in developed countries. We present a dynamic theory of commercial broadcasting where the media trade utility …

-price actions (e.g. marketing and advertising), and learn gradually about their idiosyncratic demand. The model matches quantity …

We formally model direct to consumer advertising (DTCA) of prescription drugs and examine factors that determine a … perspective there can be too much or too little private investment in advertising. Welfare is more likely to increase when the …